Assignment 3 Accounting for Pensions and other Post Retirement Benefits
Assignment 3: Accounting for Pensions and other Post-Retirement Benefits
ACC 563 – Advanced Accounting Theory
Abstract
This paper will be based research, compare and contrast the early historical accounting for Postretirement Health Care and Life Insurance Benefits with the guidance / rules in place today with the Financial Accounting Standards Board (FASB) recently issued Statement of Financial Accounting Standards No. 158 "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans; changes to the guidance and rules that would improve the financial accounting and reporting of the benefits. Predict the significant manner in which the future of accounting for these benefits could change, based on potential changes in the business and political climate; scenario in Postretirement Health Care and Life Insurance Benefits change that predict the potential impact of these changes on financial accounting and reporting practices.
Postretirement Health Care and Life Insurance Benefits
Early historical accounting for Postretirement Health care and Life Insurance Benefits, employers offering pension plans must disclosure the plans and their general features in a document. For defined Postretirement Health Care and Life Insurance Benefits plans, the employer must disclosure; if any, in the current year and pension expense equals Postretirement Health Care and Life Insurance Benefits. For as defined benefit plans, extensive disclosures of assumptions, components of pension expense, activity in the pension asset and pension obligation accounts and net funding status must be disclosed. In addition, the net pension asset/liability must be booked as an asset/liability and the change in pension assets and pension liabilities that are not booked into income must be booked into other comprehensive income. For pensions, the retirement benefits are fixed in the amount by the terms of a contract and only the term
ACC 563 – Advanced Accounting Theory
Abstract
This paper will be based research, compare and contrast the early historical accounting for Postretirement Health Care and Life Insurance Benefits with the guidance / rules in place today with the Financial Accounting Standards Board (FASB) recently issued Statement of Financial Accounting Standards No. 158 "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans; changes to the guidance and rules that would improve the financial accounting and reporting of the benefits. Predict the significant manner in which the future of accounting for these benefits could change, based on potential changes in the business and political climate; scenario in Postretirement Health Care and Life Insurance Benefits change that predict the potential impact of these changes on financial accounting and reporting practices.
Postretirement Health Care and Life Insurance Benefits
Early historical accounting for Postretirement Health care and Life Insurance Benefits, employers offering pension plans must disclosure the plans and their general features in a document. For defined Postretirement Health Care and Life Insurance Benefits plans, the employer must disclosure; if any, in the current year and pension expense equals Postretirement Health Care and Life Insurance Benefits. For as defined benefit plans, extensive disclosures of assumptions, components of pension expense, activity in the pension asset and pension obligation accounts and net funding status must be disclosed. In addition, the net pension asset/liability must be booked as an asset/liability and the change in pension assets and pension liabilities that are not booked into income must be booked into other comprehensive income. For pensions, the retirement benefits are fixed in the amount by the terms of a contract and only the term
References: Back Door Reversions: Limiting the Use of Pension Assets for Severance and Encouraging Plan Contributions Will Strengthen Defined Benefit Retirement Security; Retrieved December 7, 2014; http://www.nrln.org/flyin%20whtpprs/Whitepaper%20Back%20Door%20Reversions%20JAN.2013.pdf Controversies in Accounting for Post-Retirement Benefits; Retrieved December 7, 2014 http://www.cluteinstitute.com/ojs/index.php/JBER/article/viewFile/2466/2512